Cleo raises $40 million in Series C
San Francisco-based Cleo Labs , a family support system that employers offer to working parents, has raised $40 million in a Series C investment led by Transformation Capital, with participation from Glynn Capital, PruVen Capital and Gaingels and existing investors Greylock, NEA and Felicis. In conjunction with this round, Transformation Capital Managing Partner, Mike Dixon will join Cleo’s Board. This round brings Cleo’s total funding to $83 million.
“The new era of dependent care is here. What we’ve seen in the last twelve months is a massive acceleration in a trend of companies of all sizes looking for ways to better support their employees in a holistic manner. A recent report shows that 36 percent of working parents with children under 10 are considering leaving the workforce and another 30 percent are considering downshifting their careers. Employers see these alarming numbers and understand that when they proactively address their employees’ needs for support around mental health, pregnancy, and early childhood, they’re able to reduce healthcare spend while also improving retention rates, ultimately saving millions of dollars for large employers.” – Sarahjane Sacchetti, CEO of Cleo.
Established in 2016 by Chitra Akileswaran and Shannon Spanhake and formerly known as Lucy, Cleo offers supplemental benefits to working parents with kids up to age 12. Cleo pairs member families with an individual coach that proactively guides them through every up and down of family planning, expecting a child, and raising a family. Through Cleo’s comprehensive app, they are able to access personalized content, a supportive parent community, and a global network of certified experts including therapists, doulas, lactation consultants, among others.
“Cleo is at the forefront of a new and burgeoning category of healthcare focused on families and has been successful in meeting the moment in which employers are seeking ways to support working parents. Cleo’s meaningful services and support, proven outcomes, and role as the leading employer-sponsored family health benefit position the company to fundamentally reshape the benefits landscape and improve the lives of generations of parents and children.” – Mike Dixon, Managing Partner at Transformation Capital.